In its efforts to stimulate economic growth, the government would do well to set up a sovereign wealth fund with Taiwan's huge foreign reserves to pump into national development projects. Economic growth is driven by four factors: consumption, investment, net exports and public spending. All four have been stagnant in Taiwan.
Consumption has remained flat because of a decline in real income; investment is actually decreasing on the sluggish global economy; exports have also plunged because of feeble demand from European and American markets; and public spending has not expanded because of the government's reluctance to increase spending by borrowing...............................................Full Article: Source